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Hyundai sales slump in China over North Korea, standoff with Chinese partner

BEIJING/SEOUL — Hyundai is at loggerheads with its Chinese partner over efforts to cut supplier costs, as they grapple with cutthroat competition and the impact of a standoff between Beijing and Seoul. Hyundai, along with affiliate Kia, has been caught up in a political row over a missile defense system that is being deployed in South Korea, but opposed by China, as tensions grow over North Korean missile tests and last week's test of a nuclear bomb the North claims can be mounted on a missile. Sales of Hyundai cars in China have been falling, part of a backlash against South Korean brands over the missile system that China views as a threat to its own national security. On Tuesday, South Korea asked the United States to lift a limit on the explosive payloads it can use in the missile system. This as a North Korean missile, believed to be an intercontinental ballistic missile, was being tracked by intelligence services being moved on the ground toward North Korea's west coast and a possible launch site. That has come against the backdrop of ever tougher competition from local Chinese automakers. Until last year, Hyundai and Kia ranked third in China by sales. But Hyundai's sales alone have slumped 41 percent from January to July, fraying relations with local partner BAIC Motor Corp and making this the biggest crisis since Hyundai entered the Chinese market in 2002. Last month, Hyundai suspended production at its four China plants for a week after a French supplier refused to provide fuel tanks when its bills went unpaid. On Tuesday, Hyundai suspended production at one of its plants in China after a German firm went unpaid. Hyundai and BAIC — whose Beijing Hyundai joint venture is a 50:50 partnership — are divided over how to solve the issue of suppliers and tougher competition. Hyundai wants to protect its South Korean supply chain, while BAIC favors shifting to cheaper Chinese suppliers to cut costs, the people said. "BAIC wants to solve this aggressively and is ... asking Hyundai to change its sourcing strategy significantly and immediately," said the head of a Hyundai supplier based in Seoul, adding the idea was to source more locally from cheaper suppliers in China. Hyundai wants to solve this more gradually "over perhaps 5-10 years and do so in phases," the person said. BAIC declined to comment.

Hyundai and Kia will offer AI assistants in 2019 cars

Hyundai and Kia both have reputations as early adopters of in-car tech, and that's truer than ever now that voice assistants are becoming a practical reality on the road. The Korean automakers have revealed that they plan to include AI assistants in their new cars starting from 2019, with every vehicle being "connected" by 2025. As Hyundai explained, they've been working with SoundHound to create an Intelligent Personal Agent (based on Houndify) that both makes proactive suggestions (such as reminding you of a meeting) and offers remote control of both your car and your home. This sounds a whole lot like what other voice assistants do, but the car brands are counting on support for "multiple-command recognition" as the ace up their sleeve. If you tell your car to check the weather and turn on the lights at the same time, it'll do both instead of scratching its head like so many other AI helpers. You won't have to wait until 2019 to see the technology in action. Hyundai will unveil Intelligent Personal Agent at CES 2018, and it'll test a "simplified" take on the Agent in hydrogen fuel cell cars slated to drive on South Korean roads throughout the year. It's hard to say if IPA will have an advantage over companies borrowing "off-the-shelf" AI like Amazon Alexa or Google Assistant, but it's more the ubiquity that will be important -- you won't have to buy a premium-priced model to treat your car like a smart home hub.Reporting by Jon Fingas for Engadget.Related Video: Image Credit: Hyundai Auto News CES Hyundai Kia Technology Emerging Technologies CES 2018

Hyundai HND-12 Enduro Concept shows Seoul a motorcycle-inspired CUV

While the New York Auto Show is grabbing our attention with major debuts, Seoul, South Korea, is celebrating its own automotive event. There, Hyundai is showing off a new three-door crossover concept called the HND-12 Enduro that's inspired by long-distance, off-road motorcycles. Despite its rugged inspiration, this concept isn't made to get dirty, Instead, the Enduro is aimed at folks living in cities "with energetic, athletic lifestyles," according to Hyundai. The result looks like a Veloster after spending a lot of time at the gym that's mixed with a smaller take on the Intrado concept. To fit Hyundai's modern style, the Enduro wears a hexagonal grille but features a polished aluminum blade at the bottom that wraps around to a the muscular, black-cladded fenders. Even with its higher ride height, the concept looks a bit more like a sporty three-door hatch than a CUV in profile. The roof has just the slightest curve and leads to a tiny rear window, which is outlined almost completely by the taillights. To lend a little more utility, side steps near the rear wheels make it easier to load the top, but good luck finding much room up there to carry anything. Although, one neat feature is a sliding storage drawer hidden in the bumper just below the hatch. Inside, the Enduro is driver-focused with the center console and dashboard enveloping the pilot. Hyundai designers also try to bring in some motorcycle cues with a steering wheel inspired by the hand moldings of a road bike. While purely a concept for now, power from the Enduro comes from Hyundai's 2.0-liter turbocharged four-cylinder engine, and it's linked to a seven-speed dual clutch gearbox. Related Video: HYUNDAI MOTOR INTRODUCES 'ENDURO' LIFESTYLE CUV CONCEPT AT 2015 SEOUL MOTOR SHOW Urban crossover utility vehicle harmonizes with energetic, athletic lifestyles 'The Professional Gear' for drivers wanting to escape the ordinary Design concept is expressed in rugged, versatile yet sophisticated form language April 2, 2015 - Hyundai Motor is celebrating the world premiere of its all-new design concept, the 'Enduro' lifestyle urban crossover utility vehicle (CUV), at the 11th Seoul Motor Show today (Thursday). The name 'Enduro' is derived from 'Endurance.' Also, Enduro visually combines SUV looks with rally motorcycles which compete in the world's toughest rally events. The Enduro is designed as the perfect partner for individuals living in the modern city with energetic, athletic lifestyles.